Alabama state Senator Greg Albritton recently introduced a bill that would require the governor to negotiate a compact with the Poarch Band of Creek Indians. The agreement would give the tribe exclusive rights to Class III gambling at its three existing casino resorts in Atmore, Montgomery and Wetumpka that offer electronic bingo; they do not pay state taxes on gaming revenue. Albritton’s bill also would authorize two new Poarch Band casinos in Jefferson County and northeast Alabama. If the legislature passes the constitutional amendment, it would require voter approval.
Albritton’s district includes the Poarch Band’s headquarters. “The Poarch Band is the economic engine of this area. We don’t have Mercedes. We don’t even have Airbus. This drives a great deal of the economy for a large area. And not just here, but also for Montgomery and other places,” Albritton said. He stated he hopes the legislation will pass in time for voters to approve the constitutional amendment in the November election.
Albritton’s measure also would authorize a state lottery including instant tickets and multi-state games like Mega Millions and Powerball. Net lottery revenue would go toward education. The tribe also would have exclusive rights to offer sports betting and video lottery games.
In addition, the measure would create a 7-member Alabama Gaming Commission that would license and regulate the new casinos, as well as dog racing tracks and bingo operations in counties that authorized those games under local constitutional amendments.
Albritton said his bill would create an initial windfall for the state followed by hundreds of millions in annual revenue. Specifically, the tribe would pay $250 million per each of two 25-year state gaming licenses, and also pay a 25 percent tax on net gaming revenue. The local bingo and dog racing operations would also pay a new 25 percent state tax.
Albritton introduced his legislation despite Governor Kay Ivey’s recent called for a pause on lottery and gambling measures. She named a Study Group on Gambling Policy to research the potential benefits and costs of gambling expansion in Alabama; the group’s report is due by the end of the year.
Albritton said, “I’m not trying to step on anybody on this. But that commission has got to have a basis to determine what the values may or may not be. And this is one of the processes and hopefully one of the things that they may be able to get a consideration as to what the funds and what the revenue could be.”
However, House Speaker Mac McCutcheon said there are benefits in waiting for the report from Ivey’s study group. “They’re going to gather facts. They’re going to gather information, help us understand what it would mean for the governor to even do a compact and what kind of legal issues are we facing. So, all of these are things that we as a legislative body need to make sure that we understand.”
Observers said Albritton’s proposed constitutional amendment has little chance of passing, but the fact that it was introduced is raising eyebrows among lawmakers. Insiders said Tribal Chair Stephine Bryan and Vice-Chair Robbie McGhee promoted Albritton’s bill but other tribal officials feared an aggressive push could alienate Ivey and others.
Albritton’s legislation has been assigned to the Senate Tourism Committee, chaired by Senate President Pro Tem Del Marsh. Albritton said, “I don’t believe this is on a fast track at all. But at least it will begin the conversation again and put values out there and monies out there that can actually be done.”
Senate Minority Leader Bobby Singleton said he does not expect Albritton’s bill to advance in the near future. In previous lottery proposals, Singleton has sought to protect the local gambling operations, like his district’s Greenetrack.
Meanwhile, state Rep. Steve Clouse filed an education lottery bill with 70 co-sponsors. In the Alabama House, 63 of 105 votes are needed for a constitutional amendment. If the measure passes, it would be placed on the November ballot in a statewide referendum. “It’s just time that we put this on the ballot again. There’s going to be a high turnout in November and that’s when you want to do something like this, when you have the most voters going to the polls and we can get a clear indication if they do want to go with it or do not want to go with it,” Clouse said.
The measure would authorize a paper-based lottery estimated to generate about $167 million annually, Clouse said. Half of the proceeds would go toward a pre-kindergarten program and the other half would fund scholarships. Video lottery terminals would not be allowed. Charity bingo and parimutuel betting on horseracing and dog racing, permitted under local laws prior to January 1, 2005, still would be allowed.
Clouse’s bill is expected to pass the Senate but it could face challenges in the Senate where lawmakers may demand video lottery terminals in addition to paper tickets. Polls indicate a state lottery would pass by a large margin.
